Concept
Version 5
Created by Boundless
Impact of Dividend Policy on Clientele
![Clientele Type Example](../../../../../../../../../figures.boundless-cdn.com/10090/full/d-people-are-making-sports.jpeg)
Clientele Type Example
Retirees are more likely to prefer high dividend payouts over capital gains since this provides them with cash income. Therefore, if a company discontinued paying dividends, the clientele effect may cause retiree shareholders to sell the stock in favor of other income generating investments.
Source
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